Cranswick PLC Third Quarter Trading Statement (5448D)
February 01 2018 - 1:00AM
UK Regulatory
TIDMCWK
RNS Number : 5448D
Cranswick PLC
01 February 2018
1 February 2018
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Third quarter trading statement
Cranswick, a leading UK food producer, today provides an update
on trading for the three months to 31 December 2017.
Current trading
Total and like-for-like revenue* were both ahead of the prior
year. Each of the Group's categories delivered positive volume
growth, with this growth underpinned, as anticipated, by a strong
performance over the key Christmas trading period. Total export
sales were also well ahead.
The UK pig price continued to ease during the period, ending the
quarter at a similar level to that of a year earlier. This downward
trend is being reflected in selling prices.
Trading during the third quarter of the financial year was
slightly ahead of the Board's expectations.
Investment
The Group continues to invest at record levels across its asset
base to increase capacity, add new capability and drive further
operating efficiencies.
Construction of the new Continental Products facility, based at
Bury in Lancashire, is well advanced and progressing to plan, with
completion expected in the first half of the next financial year.
When finished, the site will consolidate production from the
Group's two existing Continental Products facilities, lift capacity
by approximately 70 per cent, add new capability and drive
efficiency improvements on existing product ranges.
Plans for the new primary poultry facility in Eye, Suffolk
continue to be developed, with construction, subject to receiving
planning approval in the coming weeks, expected to begin in quarter
one of the next financial year. This class-leading facility, which
is scheduled for completion in late 2019, will double existing
capacity with further room for expansion. The facility will
incorporate the highest animal welfare standards and latest
generation production techniques and equipment to drive operational
efficiency gains.
Financial position
During the period, the Group extended its banking facility for a
further 12 months on existing terms. The agreement, which now
extends to November 2022 with the potential to extend for a further
year, comprises a revolving credit facility of GBP160 million,
including a committed overdraft of GBP20 million. This unsecured
facility supports the Group's sound financial position and provides
significant headroom for future growth.
Net debt increased during the quarter, albeit it was below the
level at the same stage last year, reflecting the anticipated
seasonal increase in working capital and ongoing capital
expenditure.
Outlook
With experienced management at all levels of the Group, a strong
range of products, a well-invested asset base and a robust
financial position, the Board is confident in both the prospects
for the remainder of the current financial year and the continued
long-term success and development of the business.
Preliminary results
The Company's next scheduled comment on trading will be the
preliminary results announcement on 22 May 2018.
Enquiries:
Cranswick plc 01482 372 000
----------------------------- --------------------------------
Mark Bottomley, Finance
Director
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Powerscourt 020 7250 1446
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Nick Dibden / Lisa Kavanagh cranswick@powerscourt-group.com
----------------------------- --------------------------------
Notes:
1. Cranswick's activities are focused within the UK and include
the processing and supply of fresh pork, sausage, bacon, cooked
meats, premium fresh and cooked poultry, charcuterie and pastry
products. Products are primarily supplied into the UK food retail,
food service and food manufacturing sectors. Results for the year
to 31 March 2017 showed revenue from continuing operations of
GBP1,245m and profit before tax on the same basis of GBP77.5m.
2. This announcement is based on information sourced from unaudited management accounts.
3. This announcement contains certain forward-looking statements
with respect to the financial conditions, results of operations and
businesses of Cranswick. These statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements. Nothing in this announcement should be construed as a
profit forecast.
* Like-for-like revenue excludes the contribution from acquired
businesses in the current year prior to the first anniversary
following the date of acquisition.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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